Econometrics combines the subjects of Economics,
Mathematics and Statistics. This is useful for attending to, the various problems of economic development and planning. This book is based on the experience of the authors. It has eighteen Chapters and three appendices. After introducing the subject, it broadly covers topics such as probability theory, characteristic roots and vectors, distributions, correlations (simple, multiple and partial), linear multiple regression, tests of significance and of hypothesis, economic models, general structural model, structural models (simple consumption model), lagged variables model, autocorrelation model, errors in various models, multicollinearity, scedasticity, identification, theory of games and linear programming models. The 3 appendices cover matrix algebra, exercises and questions and solutions. It is basically a text book. It develops the concepts, explains the terminology, and provides examples, formulae, equations and models etc. Chapter 5 discusses simple, multiple and partial correlation, and explains the terminology, provides definitions and mathematical expressions, three types of correlation coefficients and interrelationships among them, crammer’s rule etc. Chapter 8 discusses the Econometric models, e.g. general econometric model, justification for linearity, errors and problems,
assumptions, estimates, the principle of least squares, definitions, theorems, linear functions of parameters, tests of significance and confidence regions and examples. Chapter 10 discusses structural model, gives some definitions and concepts, example of a simple consumption model, its assumptions, indirect least squares estimation, two stage least squares estimation, least-variance-ratio estimation etc. Chapter 13 discusses errors in variables model, various methods, assumptions, impact of relaxation of assumptions etc. Chapter 17 discusses theory of games , provides details of basic terminology, assumptions, properties, kinds of
strategies, general structure of pay-off matrix types of games, phenomenon of dominance, theorems, exceptions to assumptions, summary, and exercises. This book is useful for research scholars and degree and post graduate students in Economics, Commerce and Business Management etc.